FAQs Frequently Asked Questions
Dr K Market Direction Model
Why do you think the market moves in a specific manner (not the future but the present)?
We discuss this in detail in our books and in the FAQs of this website. It is a complicated answer to a simple question since if it were easy, everyone would know what to do. The market is designed to fool the majority of investors the majority of the time at critical turning points. This is why trading sell volumes spike near major market lows and buy volumes spike near major market highs. Investors all too often, lets their emotions guide their trading. This accounts for the often sharp V-bottoms seen at major market lows as FUD rules the day and traders exit in a panic. Likewise, FOMO rules the day when it comes to major tops as traders rush in to buy for fear of missing out. This cycle repeats every time. In consequence, around 80% of investors lose money in stocks, options, and futures, 10% break even, and 10% make money.
First published: | 5 Apr 2021 |
Last updated: | 5 Apr 2021 |